GBPNZD is currently registering lower highs as it attempts to move to previous levels in August. The current 50% 2.0275/1.9033 downside Fibonacci leg is providing some resistance.
The recent bearish divergence suggests that momentum has become somewhat exhausted. The next target for the currency pair could now be the 61.8% Fibonacci line.
Should prices remain engulfed in the Ichimoku cloud, then a drop to the lower 1.90 region could be in sight.
A short-term outlook shows an ascending channel from the start of the month. Several tests at the lower channel are evident.
We now look past the 50% long term Fibonacci leg for an attempt at the median regression. The small bullish divergence on the momentum indicator supports this move.
However, should further resistance be witnessed at the said level, prices could be expected to move to the lower channel once again. From then, a move towards 1.97 would be significant for the ascending channel to maintain the impetus.
